SOURCE: Tank Sports, Inc.

January 17, 2007 08:15 ET

Tank Sports Filed 10-QSB Showing 36% Growth in Revenues and 49% Increase in Gross Profit

LOS ANGELES, CA -- (MARKET WIRE) -- January 17, 2007 -- Tank Sports, Inc. (OTCBB: TNSP) has filed its 10-QSB for the 3rd fiscal quarter ended on Nov. 30, 2006. For the first 9 months of 2006, its revenues reached $7.79 million, a 36% increase as compared to $5.72 million in revenues for the same period ended November 30, 2005. At the same time, the gross profit for the 9 month period ended November 30, 2006 was $2.31 million, a 49% increase as compared to $1.55 million for the same period ended November 30, 2005, while dealer numbers increased to 252, or 27% compared to the same period.

When being asked how the company accomplished these results despite the competitive market situation, Ms Jingjing Long, Chief Operation Officer of the company, says, "We have been very persistent with our business development plan. First, we stick with our enterprise core values by providing high performance power sports products at value added pricing. We launched Vision 250E motorcycle, 150T-12 Scooter and a new version of 400 ATV, all with our proprietorship design and development. Secondly, we took the company public, which gave us a lot of drive to run business in a very professional and disciplined way, which opens up a door to access more growth capital. Looking forward, we feel even more confident than ever with our growth in year 2007. Because our merger with Redcat Motors is moving smoothly to integrate the company's ERP system, 350 plus dealers, well management organization, and $15.8 million (unaudited) in revenues in 2006. With broader product mix and lowered costs to all our dealers after the merger, we will be in a better position to support both companies' dealers with a more profitable and competitive dealership business."

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About Tank Sports, Inc.

Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles & scooters, off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion/year motorcycle/ATV market (data: Motor Industry Council).

Safe Harbor Statement

The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor'' for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with small business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.

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